What if the stock market could help predict corporate bond returns? In this episode of Quant Radio, we explore groundbreaking research on “X Trend,” a strategy that leverages stock market technicals—like moving averages and trading volume—to forecast bond performance.

Using machine learning to sift through quadrillions of model variations, the study shows that these equity trends have powerful, persistent predictive power for bonds, delivering strong returns even after accounting for trading costs. We unpack how this strategy works, why it might be effective, and what it could mean for investors looking to bridge the gap between equities and fixed income.

Find the full research paper here: https://community.quantopian.com/c/community-forums/cross-asset-trend-spillover-a-novel-factor-for-corporate-bond-returns

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Quant Radio is an AI-generated podcast, intended to help people develop their knowledge and skills in Quant finance. This podcast is not intended to provide investment advice.

Quant Radio: Equity Trend Spillover into Corporate Bonds